If parties to a contract agree to accept different performance but performance has not yet occurred, is this accord, a satisfaction, or both?

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Multiple Choice

If parties to a contract agree to accept different performance but performance has not yet occurred, is this accord, a satisfaction, or both?

An accord is in play here. When the parties agree to accept a different performance in discharge of the original obligation, that agreement is an accord. Since the different performance hasn’t been carried out yet, there’s nothing to discharge the original duty; the substitute agreement exists, but satisfaction hasn’t occurred. Satisfaction would require that the new performance be performed and accepted as discharging the original obligation. So, at this moment, it’s an accord, not satisfaction. It’s also not novation (substituting a new party) or delegation (shifting the duty to a third party while the original party remains liable).

An accord is in play here. When the parties agree to accept a different performance in discharge of the original obligation, that agreement is an accord. Since the different performance hasn’t been carried out yet, there’s nothing to discharge the original duty; the substitute agreement exists, but satisfaction hasn’t occurred.

Satisfaction would require that the new performance be performed and accepted as discharging the original obligation. So, at this moment, it’s an accord, not satisfaction. It’s also not novation (substituting a new party) or delegation (shifting the duty to a third party while the original party remains liable).

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